This question has been explained ALOT!!
Anyways
the average investment .... (160+20)/2 = 90
Average profit = 64 - 14 - 35(dep.) = 15
Apply the formula of ARR
you'll get C =)
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need to add the scrap value to the investment again??ARR= average profits/0.5(intial investment+scrap value)
when calculating average profits (cash inflow-outflow-depreciation)
updated formula???Do you know the updated formula for ARR? Or should I explain to you directly.
need to add the scrap value to the investment again??
updated formula???
ANYONE KNOW THE REASON FOR THIS! PLZ HELP
Material Y should be valued at current purchase price and material X at net realisable value.
Because Material X is used to make most of the products...why X is used fr one product....hence must be valued at its lowest! =)
IN wat part of stock valuation notes does it come? coz i have nly heard dat u value stock at lower of cost or NBV?
I didn't read it....My teacher told me about it...!
IN wat part of stock valuation notes does it come? coz i have nly heard dat u value stock at lower of cost or NBV?
sharfa riyaz is question is outdated in the sense they did use IAS-2
Always remember that inventories are valued at cost or nrv whichever is lower
thanks alot! even i thought of dat! coz its 2004 paper! so if we get a question like this we take cost or NBV which ever is lower ryt?
the material used for production of only one product should be valued at the lowest ?? i never heard abt itMaterial Y should be valued at current purchase price and material X at net realisable value.
Because Material X is used to make most of the products...why X is used fr one product....hence must be valued at its lowest! =)
the material used for production of only one product should be valued at the lowest ?? i never heard abt it
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